With the ongoing shortage of accountants, rising costs, and the struggle to keep up with technology, Chief Financial Officers (CFOs) can turn to outsourcing to mitigate these problems.
The Accounting Shortages Challenge
A 2024 survey conducted by the Chartered Accountants Australia and New Zealand (CA ANZ) revealed that over 80% of respondents reported vacancy fill rates below the expected level for accountant, auditor, and finance manager roles.
The same survey also found that Australia’s six largest professional services firms are facing hundreds of unfilled positions for external auditors, general accountants, and management accountants.
These findings highlight an underlying problem and an increasing demand for skilled finance professionals, underscoring the urgency for firms and CFOs to implement strategic hiring and retention solutions within their workforce.
In this article, we’ll examine the potential causes of talent shortage and how Australian firms can address the skills shortage in the country.
Here’s what we’ll cover:
1. Potential Causes of Accounting Shortage in Australia
2. The Role of Outsourced CFO Support Services in Filling the Talent Gap
3. How CFO Support Services Address the Talent Shortage
4. When Should You Outsource CFO Services?
5. What to Look for in the Right Outsourced CFO Support Partner
Related: 5 Effective Tips to Combat the Accountant Shortage in Australia
Potential Causes of Accounting Shortage in Australia
Several factors contribute to the accounting shortage in Australia:
1. Aging Workforce
The aging workforce in Australia has something to do with the ongoing accountant shortage.
This is supported by an Australian government data showing that over 130,000 people retired in 2022 alone, and by 2030 all Baby Boomers will be 64 or older.
This means many of these seasoned accountants are leaving the workforce, creating a gap that younger generations are struggling to fill.
2. Declining Interest in Accounting Programs
According to a report by CPA Journal, fewer students are choosing accounting as a major, leading to a decline in enrollment in accounting programs.
A discussion from the 2023 PricewaterhouseCoopers Annual Accounting and Tax Symposium also pinpoints the contributing factors to the student’s diminishing interest in taking the accountancy program:
- The extensive 150-hour educational requirement, which many students find overwhelming and a hurdle to entering the profession.
- A perception that accounting lacks excitement or creativity, making it less appealing compared to other business-related fields.
- Lower salary compared to other majors such finance and technology, which often offer more competitive compensation.
- A noticeable lack of diversity in the industry, which may discourage some individuals from pursuing accounting as a career.
This survey only shows that unlike previous generations, younger professionals often seek careers with better work-life balance and greater flexibility, making traditional accounting roles less appealing to their eyes.
3. Practitioners are Under Pressure
Accounting practitioners, particularly the younger generation, are facing high expectations and pressures to succeed.
In a survey conducted by Microsoft, 62% of Australian workers are reported being burned out at work, compared to the global average of 48% of employees.
Peta Sigley, CEO of Springfox, noted that the younger accountants are at greater risk of burnout due to high expectations and their tendency to take on excessive workloads. Many feel pressure to prove themselves, leading to unsustainable work habits.
This is a worrying issue, as it indicates that firms are still falling short of providing their practitioners with the support, they need to manage their workload and maintain a healthy work-life balance. This is particularly concerning given the fact that many accountants work long hours and have high levels of stress associated with their jobs.
4. Migration Policies and Visa Restrictions
The changes in immigration policies have made it harder for skilled foreign accountants to enter the Australian job market. In fact, a major factor contributing to this issue is Australia’s annual cap on skilled migrant workers.
While migration intake has increased in recent years, discrimination and unconscious bias, including regulatory hurdles, make it harder for migrants to work within their chosen profession. This cap creates additional barriers for businesses that rely on international talent to address workforce shortages.
The same source also highlights that despite skilled migration programs, the number of overseas accountants entering the workforce remains insufficient to bridge the talent gap.
This has placed additional pressure on the Australian government to develop new policies that will attract more skilled accountants to the country. On top of this, visa restriction also complicates the entry for skilled accountants which made it more difficult for foreign accountants to qualify for long term work visas.
Read: 2025 and Beyond: How F&A Outsourcing Can Transform Australian Firms
The Role of Outsourced CFO Support Services in Filling the Talent Gap
Now that we know the cause, let’s now discuss a viable solution to mitigate the impact of the talent gap: outsourced CFO support services.
Outsourcing CFO support services involves partnering with an external firm that offers accounting support solutions. It aims to provide CFOs with assistance in completing day-to-day finance and accounting tasks, making it an ideal extension of an organization’s accounting department. CFO support services cover everything from financial planning and reporting to compliance and budgeting.
This approach not only will help the CFO to alleviate its stress from the shortage of skilled workers but will also provide access to a wider range of expertise and resources that might not be available in-house.
Read our latest guide: A CFO’s Guide to Outsourcing Finance and Accounting Services
How CFO Support Services Address the Talent Shortage
Below are some ways CFO support services can help you bridge the skills gap within the organization:
1. Access to a Highly Skilled Talent Pool
Outsourcing gives CFOs access to qualified accounting professionals. Specialized outsourcing providers are typically experts in their field, so they can provide CFOs like you with a pool of experienced and skilled professionals.
This means that you can work with professionals who are not only diverse but can also bring valuable insights within the organization.
2. Flexible and Scalable Solution
Another benefit of outsourced CFO support services is the flexibility and scalability it provides. As a CFO, you may need to hire additional staff during peak periods or when there are major projects that need to be completed.
However, this can be quite costly and time-consuming since you have to go through the entire recruitment process again. With outsourced CFO services, you can easily scale up or down depending on your needs without having to worry about hiring new employees.
3. Cost Effective Solution
Another major benefit of outsourcing is the significant cost savings it provides.
For many organizations, hiring a full-time accountant and building an in-house finance team comes with a hefty price tag, including high salaries, benefits, office space, and training costs.
However, outsourcing finance function eliminates these expenses while still providing top-tier financial expertise within your organization.
4. Readily Available Resources
When you outsource your finance and accounting functions, you can also gain access to the service provider’s wide range of resources.
This includes the latest technology, tools and software such as Xero, QuickBooks and Power BI that can help streamline your processes and improve efficiency.
On top of that, many outsourcing providers offer additional services like payroll processing and bookkeeping that can be added on as needed.
5. Advanced Level Data Security
Data security is a top concern for many firms, especially those that handle sensitive financial information.
Thankfully, many outsourcing providers have advanced security measures in place to protect your information from unauthorized access or theft.
These include next-generation firewalls, encryption technologies, and multi-layered security defenses designed to keep your information protected at all times.
6. Business Continuity
Lastly, many reliable outsourcing providers have business continuity plans in place to keep financial operations stable, even during unexpected disruptions.
Whether it’s sudden staff turnover, an economic downturn, or a natural disaster, these providers have contingency measures to ensure your financial processes continue running continuously.
Here’s how they do it:
- Data Backup and Security Measures
In the event of an unexpected crisis, outsourcing providers will have a backup of your data, which they can use to restore it in case of an emergency.
This is especially important if you’re using cloud-based accounting software or other online tools that store your information on servers located outside of your office.
- Continuous Staff and Client Support
To maintain uninterrupted service, reliable outsourcing providers implement flexible work arrangements and designate backup contacts in case the primary point of contact is unavailable.
With a CFO support services team on your end, your organization can gain access to professionals who are always available to step in and manage critical financial functions without delays.
This ensures that key tasks—such as financial reporting, compliance, and budgeting—remain on track, helping your organization maintain stability and avoid costly disruptions.
If you’re curious about how an outsourced company ensures business continuity, you can check out this article.
When should you outsource CFO support services?
If you’re thinking twice on whether you need to reach out to an outsourcing provider, here are some signs to look out for that it may be time to consider outsourcing accounting support services:
1. Your organization is facing challenges due to the ongoing talent shortage, making it harder to find skilled local professionals.
With the causes mentioned above, it’s clear that the demand for CFO services is increasing. This means that there are fewer qualified professionals available to fill these positions, which can make it difficult for organizations to find the right person at the right time.
If you’re struggling with this issue, then outsourcing your accounting services may be a good option for you.
2. Your organization has experienced rapid growth and needs help managing its finances.
As your organization grows, so does the complexity of managing its finances. You may find yourself spending more time on administrative task and less time on strategic planning.
If this is the case, then you might get into trouble in the long run because it’s important for your organization to have a clear understanding of its financial situation in order to make informed decisions about future growth opportunities.
If also you’re struggling with this issue, then it might be time to consider outsourcing your CFO services.
3. Your organization is looking for ways to reduce costs without sacrificing quality.
If you’re like most organizations, you’re probably constantly on the lookout on how to save on overhead costs. One effective way to achieve this is by outsourcing key functions like accounting.
This can be an effective strategy for cost reduction without compromising quality. However, it’s also important to make sure that you’re partnering with the right service provider.
Read Next: CFO Support Services to Drive Company Growth this 2025
What to Look for in the Right Outsourced CFO Support Partner?
To make sure that you reach out to the right outsourcing CFO provider, then below are some of the key things to look for when choosing an outsourced CFO support partner:
1. Experience and Expertise
The first thing you should look for is experience and expertise. It is typical that the more experience an outsourced service provider has, the better they will be able to understand your firm and its unique needs and provide quality services.
Doing this, allows you to assess their ability to provide you with the right level of support and expertise.
2. References and Testimonials
The next thing you should look for is references and testimonials from past clients. This is because these will give you an idea of how well the outsourced CFO provider has performed in the past.
You can also ask for references from other firms that have used their services before. This will allow you to get a more unbiased opinion on whether or not they are suitable for your needs.
3. Flexibility
The third thing you should look for is flexibility. This is important because it allows you to assess whether or not the outsourced service provider can adapt their services to meet your changing needs.
4. Participate in Industry-Focused Events
Lastly, you should consider participating in industry-specific events. This will give you the opportunity to learn more about accounting service providers and how they operate.
You can also use this time to ask questions about their services and how they can support your organization.
Additionally, attending these events allows you to connect with industry experts and seek valuable advice, which can be very helpful when it comes time to choose an outsourcing company.
The Bottom Line
The talent gap in Australia’s finance and accounting industry poses a major challenge for finance executives and professional services firms. However, one smart way to bridge this gap is to consider reaching out to an outsourced CFO service provider.
Team Up with D&V Philippines’ Accountants
If you’re looking for the right partner to build a support team within your organization, then you can consider partnering with D&V Philippines for outsourced CFO support services.
With over a decade of experience providing top-tier financial services to clients worldwide, we take pride in delivering high-quality accounting solutions. Schedule a free consultation with us today to find out more about how we can help you.
You can also read testimonials from our clients and download our Premium CFO Solutions whitepaper to see if we’re the service provider you’re looking for.
